Union Budget 2025: Bihar takes centre stage, which state got what?

Union Finance Minister Nirmala Sitharaman made a number of announcements for different states, including Bihar, which is set to go to the polls later this year. Among the key initiatives for Bihar, she announced the establishment of a Makhana Board, financial support for the western Kosi canal and assistance for enhancing the capacity of IIT Patna. Additionally, she unveiled special measures for Gujarat and the Andaman and Nicobar Islands.

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The 8th Union Budget, presented by Sitharaman on Saturday—the second in Prime Minister Narendra Modi’s third term—has put Bihar in the spotlight with several transformative initiatives. Covering a wide spectrum of areas from agricultural reforms to infrastructure development, the budget highlights Bihar’s central role in India’s economic roadmap. Here’s a closer look at the state-specific announcements made in the Union Budget 2025 speech.

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Makhana Board in Bihar

• A dedicated Makhana Board will be established in Bihar to bolster the production, processing, value addition and marketing of makhana, a key agricultural product of the state.

• The initiative aims to organise farmers and workers into Farmer Producer Organisations (FPOs) to enhance collective bargaining and market access.

• The board will provide training and support to makhana farmers and ensure they benefit from all relevant government schemes.

Boost to food processing industry

• In line with the Purvodaya initiative, Bihar will house a National Institute of Food Technology, Entrepreneurship, and Management, strengthening the state’s food processing ecosystem.

• This institute will catalyse higher incomes for farmers through value addition while fostering entrepreneurship and employment opportunities for the youth in the entire Eastern region.

Expansion of IIT Patna

• IIT Patna will see a significant expansion in its hostel and other infrastructural capacities.

• The total number of students across all 23 IITs has doubled in the past decade, growing from 65,000 to 1.35 lakh.

• The expansion at IIT Patna will be part of a broader initiative, adding infrastructure for 6,500 more students in five IITs established post-2014.

Greenfield airport for Bihar

• The government has proposed the development of Greenfield airports to cater to the state’s growing aviation needs.

• This is in addition to the expansion of Patna airport and a brownfield airport at Bihta, reinforcing Bihar’s connectivity with the rest of India.

Western Koshi Canal project: A boon for Mithilanchal

• The budget earmarks financial support for the Western Koshi Canal ERM Project, which will transform the agricultural landscape of Mithilanchal.

• Over 50,000 hectares of farmland will benefit from enhanced irrigation, ensuring better yields and income security for farmers.

Other key announcements

Andaman & Nicobar and Lakshadweep Islands

• India ranks second in global fish production and seafood exports amount to Rs 60,000 crore.

• A new enabling framework will be introduced to harness fisheries potential in the Indian Exclusive Economic Zone and High Seas, with a special focus on Andaman & Nicobar and Lakshadweep Islands.

Assam

• In a bid for Atmanirbharta in urea production, three dormant urea plants in the Eastern region have already been reopened.

• To further boost urea supply, a new urea plant with an annual capacity of 12.7 lakh metric tons will be set up in Namrup, Assam.

North-East Region

• Saksham Anganwadi & Poshan 2.0: Cost norms for nutritional support will be enhanced under this scheme, benefiting over 8 crore children, 1 crore pregnant women, and 20 lakh adolescent girls, especially in aspirational districts and the North-East region.

• UDAN - Regional Connectivity Scheme: A modified UDAN scheme will introduce 120 new destinations and carry 4 crore passengers over the next decade. The scheme will also enhance helipad and small airport infrastructurein hilly, aspirational, and North-East region districts.

Gujarat: Strengthening IFSC

• To attract global investments, the budget proposes specific incentives for ship-leasing units, insurance offices and treasury centres within the International Financial Services Centre (IFSC).

• The cut-off date for commencement of IFSC units has been extended by five years to 31st March 2030.

• Exemptions and deductions in taxation for IFSC activities, including ship leasing and foreign investments, have been extended to make Gujarat a global financial powerhouse.

Bihar gets the lion’s share

The 8th Union Budget unequivocally places Bihar at the forefront of India’s developmental agenda. With a dedicated Makhana Board, a new food processing institute, IIT Patna’s expansion, a greenfield airport and massive irrigation investments, Bihar emerges as a strategic focus area for the Modi government. These initiatives are set to transform Bihar into a key player in India’s economic resurgence, reaffirming its critical role in the national growth narrative.